In the middle of October 2025, Polybutadiene Rubber (PBR) prices decreased moderately in China amid changing demand conditions and increased input costs. Supply of PBR continued to be steady from Japanese and South Korean sources, allowing materials to remain available while end-buyers in downstream markets remained cautious by not purchasing material in the immediate spot market. Increased costs for metals and other inputs and lower purchasing from the tire sector were also limiting PBR price pressure.
The availability of PBR was healthy with plenty of Butadiene around with good logistical flow. Butadiene-based rubber imports fell 34% from the previous month in August 2025 to 14,893.88 MT as manufacturers adjusted pre-holiday inventories and adopted cautious purchasing strategies. There was enough inflow to maintain suppliers with healthy levels of inventory while they were also careful to manage production and distribution to prevent over-saturation. Steady port operations assured a uniform flow of material and domestic supply remained ample, although CPU purchasing slowed from downstream segments which limited PBR price increases, and kept a reasonable balance in the overall market, despite it being softening.
Domestic automotive demand remained strong, with sales of 3,226,000 vehicles for September 2025 reported in China, an increase of 12.92% from August and 14.85% year-on-year, according to the China Association of Automobile Manufacturers (CAAM). This continued to have a supporting effect on consumption of PBR for seals, gaskets, and interior components. Demand in tires continued to weaken with over 73.3% of semi-steel and 40% of all-steel tire producers reporting a decrease in orders because of the EU anti-dumping situation and trade tensions. Domestic winter tire activity was limited by rainfall and pre-holiday maintenance outdoors and impacted the demand for PBR in this area as well.
All in all, the combination of uncertain export markets, cautious purchasing by downstream businesses, and inflation in input costs led to the observed PBR price softening. Production for automotive customers has still provided support for stable demand overall, although a slow tire sector and suppliers stockpiling inventory ahead of the holidays maintained downward pressure on PBR price quotations in this period.
According to the ChemAnalyst, PBR prices in China are projected to be moderately pressured until domestic demand picks up after the holiday season, and international trade conditions stabilize. Also, the prices of Butadiene are also projected to remain downward, this is also expected to apply some downward pressure to the PBR production cost in near term.
